Inoperative EPF Accounts

The Government vide notification no. G.S.R. 1065 (E) dated 11.11.2016 has amended paragraph 72(6) of the Employees’ Provident Funds (EPF) Scheme, 1952 wherein changes have been made in the conditions leading to a Provident Fund (PF) account becoming an Inoperative Account. As per amended definition of Inoperative Account (w.e.f. 11.11.2016), an account becomes inoperative after the age of 58 years, i.e., 36 months after the retirement age of 55 years. The details of inoperative accounts and amounts involved therein, consequent upon implementation of the above notification, have not been ascertained by Employees’ Provident Fund Organisation (EPFO) presently as the date of birth in respect of many employees is not available in the EPFO database presently.

As per paragraph 60(6) of EPF Scheme, 1952, interest shall not be credited to the account of a member from the date on which it has become an inoperative account under paragraph 72(6) of EPF Scheme, 1952. However, as per amended definition, an account shall be classified as Inoperative after the member attains the age of 58 years. Hence, interest shall be credited to the account of a member upto the age of 58 years.

This information was given by Shri Bandaru Dattatreya the Minister of State (IC) for Labour and Employment, in a written reply to a question in Lok Sabha, today.

Comments

There seems lot of confusion on EPF inoperative accounts interest. I left my job in 2014 when I was 50 years old. I run my own firm now. There is no contribution to EPF for 36 months now. I am 53 years old. Will my PF account get interest till I am 58 years old? Or should I withdraw my PF now?

The Govt. had not taken any action for Pensioners who were allowed Grade Pay 4200/- as on 01/01/2006 whereas the Grade Pay for similar ranked serving employees was allowed 4600/-.. Therefore, Grade Pay for pre 2006 Pensioners needs to be enhanced to 4600/- P.M.